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This topic comprises 2 pages: 1 2
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Topic: How to determine how many screens to build?
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Jack Ondracek
Film God
Posts: 2348
From: Port Orchard, WA, USA
Registered: Oct 2002
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posted 12-10-2003 01:50 PM
That IS a good one, Brad.
I have 3 screens at my drive-in. That's plenty, except for parts of July and August (which just happen to be my busy months) when 6 would be about right.
Seems it's the same with my indoor. I have 4 there, and that's usually enough, given that I'm in an area with Regal and AMC. There are occasions when 5 would be better, since it's not often I can stack titles. On the other hand, there are times when the shows just tap out fast and 2 would be just fine.
Off the top of my head, I guess one way I'd look at it would be to evaluate how many times I'm sending out films that are still bringing in enough money that I'd have held them over, were it not for a new show coming in that I "had" to have. Those are the shows that would have been in the lower percentage weeks that might have made a few dollars I could have kept, while paying those higher first & second week dollars to the studios. Whatever that threshold is for you, if you're shipping out films while they're still above that figure, you probably still have an audience. Without more screens, you're actually training them to rush to your place during those high-cost weeks... because they might find the show is gone if they don't get there fast.
On the other hand, if you fairly consistently find yourself holding pictures over that have tapped out, but you're just keeping them there to light the screen, you probably have enough screens... if not too many.
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Kevin Wale
Expert Film Handler
Posts: 167
From: Guymon, OK USA
Registered: Aug 2003
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posted 12-10-2003 03:36 PM
The addage that more is better seems to have applied to the industry over the past 15 years or so. Now, there is a decided trend in downsizing. Kurt Hall mentioned once that UA would no longer build 20 plexes.
In the real world, I've really experienced the crunch of not enough screens. In a town of 10,000 we had 5 screens. It was expanded to 8. It has caused numbers to increase and would have caused it much more had the three new screens been designed right. Basically what they are doing now is allowing the 5 original screens to keep things moving and allowing titles to take advantage of the late run splits.
In a town of 20,000 + we had three screens and it is crazy. So often you can't get the titles you want because you have to keep the titles that are doing well. There is no competition in either town.
Where I work now we have two screens and it's terrible.
Another key is the competition factor of course. If there is a mega down the street, a smaller number might be the best way and to just beat them in quality. Similar to The Senator in Baltimore's approach(although he is expanding.)
6-8 screens seems like the best number because it allows half of your theatre to be treated as though they are the only screens and the other half to be running splits most of the time.
The size of town I am beginning to feel doesn't matter after a certain number. Big cities would obviously allow for more because of the population, but there are more theatres to deal with and suburb after suburb after suburb.
If I had a tripple, I would do some seriuos projections on paper comparing 6 with 8 screens with a guestimate of 6 being the best way to start and allowing future expansion should it be real successful.
The best way I think would be to find out exactly how many seats you would have to fill to break even given all costs involved. Then determine how much you can realistically expect above the break even point. If that point seems unrealistic, deduct a screen until you have realistic numbers.
Consider also of course labour costs, and maybe even more importanly, can people realistically expect to be able to reach your theatre. Will the parking be so crazy that they just won't walk the length of an aircraft carrier to get to the front door and then have to walk half a block to get to the screen showing the movie they want to see?
If memory serves, you can count cars and multiply by 2.5 and be very close to how many tickets you have sold. How many cars would be added if you had good business in your new screens? (reverse the process)
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Kevin Wale
Expert Film Handler
Posts: 167
From: Guymon, OK USA
Registered: Aug 2003
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posted 12-11-2003 06:31 PM
quote:
The movie theatre in Guymon, Oklahoma is a good example. They opened with five screens and opened three more this year. They also have the market cornered I think the closest competitor is in Liberal Ks some 70 miles away. The Northridge 8 is also the single cleanest movie theatre I have ever been in, you could eat off their bathroom floors.
Liberal is actually 40 miles from Guymon but it has some aging issues and has struggled to keep up. The owner of the theatre in Liberal is a really neat guy, he just sufferes from some perception issues(his theatre that is, not him).
Yes, we prided ourselves in our bathrooms and overall cleanliness. For where it is, it's amazing that it exists.
The three screens other than the ones in Guymon are in Woodward OK. It's a much older facility and needs quite a bit of work. The front theatre is DTS and is still quite nice for it's age. The back two which are at least a decade newer are in pretty bad shape all around. They are now DTS after some work done earlier this year(I hate running speaker cable behind old burlap curtains by the way! LOL)
Guymon has had an advantage of no competition however and thier methods may not work in some of the more saturated areas. Well, it would work but it would be quite a bit more costly as you would have to beat the other theatres in some other way than just being clean, and having digital sound which is a landslide in rural areas like the OK panhandle.
I miss working there a bunch. THere is just more long term oportunity for me here although the theatre I work at now is far from enjoyable at this point.
Ron and Jeanette Funderburg have certainly built something to be proud of I will say that. It could be better, but they know that and take steps every year to improve.
And if Seth(the head projectionist there) is reading this... EMAIL ME DUDE!!!!!!!!!! ![[Smile]](smile.gif)
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